HCMC – The National Assembly (NA) on November 17 passed a resolution at its 10th sitting, approving the Government’s proposals to eliminate the difficulties facing Vietnam Airlines due to the impact of Covid-19.
Accordingly, the lawmaking body asked the State Bank of Vietnam to direct credit institutions, except those under special surveillance, to offer low-interest loans to Vietnam Airlines.
In addition, Vietnam Airlines is allowed to issue shares to its existing shareholders, specifically the State, to raise its charter capital. The Government, which owns 86% of the airline, will buy the shares through the State Capital Investment Corporation.
The NA also ordered the enhancement of inspection and supervision into the adoption of these solutions to ensure they are deployed in line with the law. Vietnam Airlines must continue working on solutions to reduce loses and conduct production and business activities effectively and pay more attention to laborers’ benefits as the pandemic may not end soon.
Thus, eight months after the Covid-19 pandemic affected the aviation sector, the National Assembly has approved practical solutions to help the national flag carrier.
Vietnam Airlines and the Commission for the Management of State Capital at Enterprises have repeatedly been proposing that the Government and the NA allocate VND4 trillion at no interest for three years for the airline through credit institutions.
From Vietnam Airlines’ establishment until 2019, the firm contributed nearly VND45 trillion to the State budget. However, the air carrier incurred losses of VND10.75 trillion in the January-September period due to Covid-19. The figure is forecast to surge to some VND15 trillion this year.
In addition, the firm may face a cash deficit of VND15-16 trillion.